Mortgage rates for February 27th, 2019 will start the day at similar levels as Mortgage Backed Securities and Treasuries start the day in positive territory. It’s been a good month for mortgage rates and heading into March mortgage rates are near their lowest levels of 2019.
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security Coupon FNMA 4.0 opened the day at the 102.06 level and the 10y Treasury opened at the 2.63% level however since the open the 10y yield has pushed higher to 2.65%. The 2.63% level is right at the bottom end of the range we’ve seen since January (2.62% – 2.72%).
FHA Mortgage Rates
Today we have the weekly Mortgage Market Index data (Durable Goods was rescheduled). Also today is the continuation of Fed Chairman Powell’s testimony in front of Congress. Thursday is the GDP Prelim Q4 report and Chicago PMI report. We finish off the week with Core PCE, Personal Incomes, Retail Sales (January), and ISM Manufacturing PMI (February).
Today’s Mortgage Market Index:
This weeks report showed an increase in activity. The MBA Purchase Index increased from 232.7 to 247.0 and the Mortgage Refinance Index increased from 1084.4 to 1133.8. The overall MBA Market Index increased from 365.3 to 384.8. This is good news for housing and mortgage lenders as it’s been a slow start in 2019.
Economic Data For Next Week:
Next week we have ISM-New York Index and Construction Spending on Monday. Tuesday we have ISM Non-Manufacturing and New Home Sales. Wednesday we have the ADP Employment report and weekly Mortgage Market Index data, Thursday we have Labor Costs and Productivity along with Consumer Credit. On Friday we have the BLS Employment report, Wholesale Inventories and Wholesale Sales.
Mortgage Rates and The Employment Report:
Next week is the very important BLS Employment report. Expectations are for 175,000 jobs created, 3.80% unemployment rate and 0.3% increase in wages. The last two BLS Employment reports have been blockbuster type reports with respect to the number of jobs created: December 2018 (which was reported in January) was 301,000 (this was revised lower) and January’s data (reported in February) showed a total of 96,000 jobs created. Those are huge numbers considering were 9 years into this current economic expansion. Average earnings were strong for December but weakened in January. The Average earnings component is important for inflation and bond markets. Higher wages sometimes equals higher inflation which tends to lead to higher mortgage rates.
How Will Mortgage Rates React If It’s Another Blockbuster Report:
A lot is going to depend upon where the market is at heading into the report. If we are at similar levels to today, near the bottom of the range, I don’t think a blockbuster report is enough to push mortgage rates outside of the top end of the range. However if mortgage rates move higher and are at the top end of the range going into the BLS Employment report then we do run the risk of pushing to new highs for 2019. That being said; if we do maintain current levels heading into the report and the report is a big disappoint we may see new lower mortgage rates post report (big maybe).
Currently We Are Seeing:
30 year fixed mortgage rates below 4.375%, 20 year fixed mortgage rates below 4.25% and 15 year fixed rates below 3.75%. 30 year fixed FHA mortgage rates are below 4.125%.
Please keep in mind that mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile. Also things like obtaining cash out, lower credit scores, higher Loan-To-Value ratios, rental properties and the subordination of a second mortgage will cause in an increase in your mortgage rate. To obtain the most up-to-date quote specific to your loan scenario be sure to contact Loan Officer Kevin O’Connor at 1-800-550-5538 or you can submit a “Contact Us” request on the our website.
March 2019 Mortgage Rates:
We have a post dedicated to covering mortgage rates in March. If you’re looking to stay on top what’s happening with mortgage rates, industry news and money-saving tips please be sure to visit our March 2019 mortgage rates page on daily/weekly basis. As mentioned above mortgage rates are near their 2019 lows as we head into March. Overall it’s been a good start for mortgage rates in 2019. We anticipate mortgage rates will remain range bound going into March and we’ll be looking for indications for when that range might be broken.
JB Mortgage Capital, Inc.:
We offer industry low mortgage rates for both refinance and purchase transactions, personal one-on-one service and we have an A+ rating with the Better Business Bureau (BBB). We also have a top rating with the Business Consumers Alliance (AAA). We utilize the latest technology to ensure a fast closing and Loan Officer Kevin O’Connor has over 14 years of experience as a mortgage professional. You can contact him directly at 1-800-550-5538.